Selected papers~ SPECIAL EDITION - Index of

Romania, as well as Bulgaria, is experiencing an amazingly low level of this indicator and,
unlike Bulgaria, has recorded a decrease in time. Figure 1 shows a comparison between the
evolution in time of the indicator in Romania and the European Union average.
1,5
1
0,5
0
Figure 2: Comparison between the average productivity of resources in EU 27 countries and
Romania during 2000-2007
Source: Based on the data from Eurostat, Statistics, Sustainable Consumption and Production
5. Capital productivity and capital stock
Capital productivity index shows the
economic result (gross value added) produced
by a certain amount of immobile productive
capital.
To measure the capital stock involved in a
production process, literature and empirical
analysis recommends several methods:
- The flow of productive services provided by
an asset in the production process;
- Gross stock of capital obtained by
cumulating the investment flow, adjusted by
the rate of removal from service of capital
goods.
- The net stock of capital obtained by
correcting the gross stock capital with the loss
of productive capacity.
Given the availability of statistical data, we
used the gross stock of capital to estimate the
coefficients for the production function. In
the process of estimating the production
function coefficients, we have highlighted the
contribution of other factors, besides labor
and capital.
Multifactor productivity (MPF) allows the
identification of distinct contributions of
labor, capital, intermediate consumption and
technology/efficiency to the final production.
This contribution is shown by indicator PMF
UE 27 România
2000 2001 2002 2003 2004 2005 2006 2007
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- KLEMS (capital-labor-energy-materialsservices),
considered to be the most
comprehensive measure of efficiency at
industry level, calculated only for 25
countries from the EU, Romania and Bulgaria
being excepted.
6. Results of the research and conclusions
For econometric estimation of production
function coefficients for the manufacturing
industry in the two countries, we used
statistical data about gross value added (VA),
the number of hours worked (HEMP) and
gross capital stock (KGFCF) from the
Eurostat database for Germany and the
corresponding data of the same variables in
the Statistical Yearbook of Romania 2009.
Variables were converted from RON to euro
for Romania, using the average annual
exchange rate, published by the BNR. Before
2000, the exchange rate seemed to distort the
value sizes studied, so we decided to limit the
time series data to the period 2000-2007,
although statistics provide data since 1995.
The production function has the following
expression:
Y = A * L α * K β , where Y, L and k are
respectively VA, HEMP and KGFCF and the
exponents are elasticities of output